With the stock market being down for a while, and other investment options kind of average returns. It’s time to take a look at some of the other investment options, which can prove to you to be better investment options for your hard-earned money.
3 alternative investment options-
1. Real estate investment trust –
REIT or Real estate investment trust, is an investment option for those who would want to invest in real estate. It is similar to mutual funds, once you invest it is pooled together and then invested in real estate projects. REIT is getting very popular recently, but there aren’t many investors. The main advantage of REITs is that they are traded like stocks and thus making them liquid unlike physical investment in real estate, which can be tough to sell. Also, one thing that makes investment in REITs attractive is that you can start with as low as 1000 rs, as compared to the amount required to invest in physical real estate. Also, you get a passive income source in the form of dividends, and average returns of 12-20% make it quite a good investment option. Some of the famous REITs in India are Brookfield India real estate trust and Mindspace business park REIT’S.
2. Cryptocurrency and NFT –
This is one of the buzzing investment options out there, which has gained popularity in recent times. For those who don’t know what cryptocurrency is? It is a kind of digital currency, which is based on blockchain technology and protected through cryptography. One can basically buy and sell cryptocurrency-like stocks from apps such as Wazirx, Cryptocurrency is a very volatile investment, there are no assured returns, similar to stocks. One of the drawbacks of cryptocurrency is there is no source of passive income that comes with cryptocurrency. Also, there are scam cryptocurrencies out there that one should be aware of. But if you’re looking to diversify your portfolio then cryptocurrency can be a great option.
Next, we have NFT or Non-Fungible tokens. It is a kind of collectible, usually NFT are pictures, videos, or music. Usually, NFTs are bought and sold, but the drawback with NFTs is that their value depends on what the buyer is offering to pay. So there are no assured returns and you can even sometimes have no returns. But you can buy them as a diversification for your portfolio.
3. Private equity –
We all know how we can buy the equity of listed companies in the stock market, but we can buy the equity of companies that are not listed. Earlier this option was only available to a small group of people such as venture capitalists and angel investors, but now you can also buy the equity of a company before they get listed because this would increase your chances for better returns, there are many apps out there, that provide you option to invest in private equity one such Is the smallcase. Also, the chances of your money getting double is high when you invest in startups as compared to when you invest in already listed companies. But this comes with its own risk, sometimes the startup may fail but you can still try investing the amount of funds that you can afford to lose. This is a very great option for those looking for above-average returns, but be aware of the risk associated with it.
Conclusion –
These are some of the uncommon investment options, but these options carry some particular risks with them. One may research and then invest, and remember that not everything that shines is gold, so make sure you invest your hard-earned money properly.
NOTE – This is not any kind of investment advice, user discretion Is advised before investing in anything.
NOTE – This is not any kind of investment advice, user discretion Is advised before investing in anything.